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Keep ready sizeable amount, SC tells Jaypee

Statesman News Service | New Delhi |

Refusing to allow Jaypee Associates to deposit a part amount of Rs 400 crore, the Supreme Court on Monday told the company to keep ready a sizeable amount of Rs 2,000 crore before its next hearing.

A bench of Chief Justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud asked the real estate major to keep ready the amount as company counsel Anupam Lal Das said they have Rs 50 crore “ready in hand” and will arrange for another Rs 350 crore by Friday.

The bench said Rs 400 crore was a paltry sum and the firm will have to deposit a substantial amount to establish its bonafides.

‘Arrange whatever money you can arrange, but it must be a bonafide exercise,” the bench said when the counsel for the firm said the shareholders’ consent would be needed to sell the assets of the group.

The bench then said that the firm may consider depositing at least Rs 1,000 crore by 13 November with its registry.

The apex court had directed the real estate major to deposit Rs 2,000 crore to protect the interest of the home buyers of Jaypee Infratech — it’s wholly owned company — which is under restructuring on the orders of the Allahabad bench of the NCLT.

The IDBI had moved the National Company Law Tribunal (NCLT) for default of payment against the loan taken by it.

The real estate firm which was asked on 11 September to deposit Rs 2,000 crore with the apex court registry by 27 October, rushed to the apex court, saying no company possessed such a huge amount of “liquid” funds and urged that it should be allowed to deposit Rs 400 crore by Friday.

The top court had asked Jaypee Infratech to hand over the records to the IRP for drafting a resolution plan indicating protection of interests of over 32,000 hassled home buyers and creditors.

It had also stayed any other proceedings instituted against Jaypee Infratech for any purpose in any forum like the consumer commission, as IRP has been given control of the company’s management.

The court had allowed Jaypee Associates to raise Rs 2000 crore by selling land or properties and deposit them in the apex court registry by 27 October.